Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $21 a unit, production costs at 38% of sales price, annual fixed costs for production at $160,000, and straight-line depreciation expense of $210,000 per year. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system?
Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $21 a unit, production costs at 38% of sales price, annual fixed costs for production at $160,000, and straight-line depreciation expense of $210,000 per year. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Grady Precision Measurement Tools has forecasted the following sales and costs
for a new GPS system:
annual sales of 40,000 units at $21 a unit,
production costs at 38% of sales price,
annual fixed costs for production at $160,000, and
straight-line depreciation expense of $210,000 per year.
The company tax rate is 30%.
What is the annual operating cash flow of the new GPS system?
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